Italian Carraro Group will sell non strategic assets of its controlled company MG Mini Gears spa to the German fund Finatem (download here the English press release).
A binding agreement for the sale of the assets miniGears of Padua and Suzhou (China) was signed yesterday. The two plants, specialized in the production of powder metal gears, will cooperate jointly with Herzog GmbH, a German manufacturer of components and gears, based in southern Germany, already controlled by Finatem.
With its head office in Padua, and an operational plant in Suzhou (China), miniGears is specialized in the production and marketing of small gears, mostly powder metal ones, for different sectors (automotive, professional gardening, power tools). Last December 2013 the two plants employ a total of 526 people and register a total turnover of 69.8 million euros.
More in detail, the agreement foresees the sale of the business unit related to the production and operational activities of the Padua Mini Gears plant and of the entire shareholding in the MG Mini Gears Suzhou Ltd company. The total value of the transaction (Enterprise Value) is approximately 28 million euros corresponding to a multiple of approximately 10.4x Ebit 2013 of the scope of the operation.